Hardwood flooring retailer Lumber Liquidators Holdings Inc. reported a 17 percent drop in profit in the fourth quarter despite a 12 percent increase in sales.
The Toano-based company said profit fell to $5.9 million, or 21 cents per diluted share, compared with $7.1 million, or 25 cents per share, during the fourth quarter of 2009. The company blamed the decrease in profit on increased transportation expenses and lower productivity associated with the implementation of new management software.
Sales rose 12 percent during the quarter to $153.2 million. The company saw a 1.2 percent increase in sales at existing stores during the quarter and opened 10 new stores.
For the full year, Lumber Liquidators reported a 14 percent increase in sales to $620.3 million and a 2 percent decrease in profit to $26.3 million.
The company expects net sales between $700 million and $730 million in 2011 and is planning to open 40 to 50 new stores in the U.S. and Canada.
“As we look forward in 2011, we are reinvigorated by the opportunity to deliver our unique value proposition with our productivity challenges largest behind us,” CEO Jeffrey W. Griffiths said in a statement.
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